Contractual relations in the milk and milk products sector

Between 2007 and 2009, after rising briefly the milk price collapsed as a result of structural overproduction.

Another factor behind the collapse was the EU's initial phasing out of milk quotas.

The glut of milk forced many farmers to sell at loss, but dairies and supermarkets failed to pass on the drop in prices to consumers.

The Commission suggested establishing a producer organisation for dairy farmers to boost their bargaining power vis-à-vis dairies and supermarkets. This would have led to greater transparency in the supply chain and made it easier for farmers to earn a living from their produce.

The measures proposed in the adopted report are insufficient to avert future milk crises. Proposals made by the Greens to strengthen dairy farmers, set up a price-monitoring agency and boost support for local processing were all rejected.